ECONOMICS

PG - Syllabus

Core/Open
Code Papers Credits Marks
/ Elective
Semester : I
ECO-PG-C101 Microeconomics I C 4 100
ECO-PG-C102 Macroeconomics I C 4 100
ECO-PG-C103 Introduction to Statistics C 4 100
ECO-PG-C104 Mathematical Economics C 4 100
Semester : II
ECO-PG-C201 Microeconomics II C 4 100
ECO-PG-C202 Macroeconomics II C 4 100
ECO-PG-C203 Basic Econometrics C 4 100
Foundations in Research Methods and
ECO-PG-O204 O 4 100
Data Analysis *
Semester : III
ECO-PG-O301 Indian Economy* C 4 100
ECO-PG-C302 International Trade and Finance O 4 100
ECO-PG-E303 Advanced Econometrics E 4 100
ECO-PG-E304 Industrial Economics E 4 100
ECO-PG-E305 History of Economic Thought E 4 100
ECO-PG-E306 Globalization and Development E 4 100
ECO-PG-E307 Public Finance E 4 100
ECO-PG-E308 Financial Economics E 4 100
ECO-PG-E309 Economics of Social Sector E 4 100
ECO-PG-E310 Economics of Identity and Discrimination E 4 100
ECO-PG-E311 Structure and Growth of Indian Industries E 4 100
Semester : IV
ECO-PG-C401 Dissertation C 4 100
ECO-PG-E402 Economics of Growth and Development E 4 100
ECO-PG-E403 Environmental Economics E 4 100
ECO-PG-E404 Agricultural Economics E 4 100
ECO-PG-E405 Economics of Informal Sector E 4 100
ECO-PG-E406 Computer Applications in Economics E 4 100
ECO-PG-E407 Analysis of Indian Planning E 4 100
ECO-PG-E408 Time Series Analysis E 4 100
ECO-PG-E409 Poverty and Inequality E 4 100
ECO-PG-E410 Economy of Mountainous Region E 4 100
ECO-PG-E411 General Equilibrium Analysis E 4 100
ECO-PG-E412 Efficiency and Productivity Analysis E 4 100

*They are the “open papers”, two papers with one asterisk mark, which may be opted by the
students from other departments as well under the CBCS of UGC. Otherwise, they are
Core/compulsory papers for the students of the Department of Economics.
Note: Electives papers offered may be decided (differed) by the Department semester to
semester basis.

1
 MICROECONOMICS I
ECO-PG-C101
Master of Arts in Economics
Semester I (Core Paper)

Total Credit: 4

UNIT-I:
Consumer Behavior:Preference relations, Axioms of preference relations, Utility function and
preference relation, Consumer preferences, Consumer budget set, Utility maximization problem,
Derivation of Marshallian demand function with application, Indirect utility function and Roy’s
identity, The expenditure function and Hicksian demand functions, Relation between indirect
utility function and expenditure function, Duality between Marshallian and Hicksian demand
function, Income and substitution effect, Hicksian substitution effect, Slutsky equation,
Aggregation in consumer demand, Choice and Revealed Preference. Decision making in Risk
and Uncertainty.

UNIT- II:
Theory of Firm: Production, Production function, Elasticity of substitution, Homogeneous
production function and concavity, Returns to scale and varying proportions, Returns to scale
(global and local), Cost functions, Conditional input demand function in homothetic production,
short run and long run cost functions, duality in production and cost function, recovering
production function from cost function, Competitive firm’s profit maximization, profit function,
supply and input demand function, short run profit function.

UNIT-III:
Market Structure: Perfect competitive market, Short run and long run equilibrium in
competitive market, Imperfect competition, pure monopoly and profit maximizing output,
discriminating monopoly and durable good monopoly, the Coase Conjecture, Strategic behavior
of firms in imperfect markets— Betrand, Stackleberge and Cournot model; Monopolistic
competition.

UNIT-IV:
Equilibrium and Welfare, Market Failure and Game Theory: Price and individual welfare,
Efficiency of competitive outcome, efficiency and total surplus maximization, application,
market failure under adverse selection, signaling models, screening model; game theory,
strategic decision making, dominant strategy, strictly dominated strategy, Nash equilibrium,
Mixed strategy, simplified Nash equilibrium test.

SELECTED READINGS
1. G. Jehle and P. Reny (2011). Advanced Microeconomic Theory, (3rd Edition) Prentice
Hall
2. Andreu Mas Colell, Michael D. Whinston, Jerry, R. (1995). Microeconomic Theory,
OUP,

2
 3. Perloff, Jeffrey, M (2008). Microeconomics Theory and Applications with Calculus,
Pearson Addison, Wesley.
4. Sen, A. (1999), Microeconomics: Theory and Applications, Oxford University Press,
New Delhi.
5. Stigler, G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New Delhi.
6. Varian H R. (1992). Microeconomic Analysis, (3rd Edition) Norton International Student
Edition
7. Aleskerov, F, Bouyssou, D., Monjardet B, (2007). Utility Maximization, Choice and
Preference, Springer,
8. Schotter, Andrew (2009). Microeconomics: A Modern Approach. South Western, Cen
Gage Learning.
9. Angus_Deaton_and_John_Muellbauer (1986). Economics and Consumer Behavior, CUP.
10. E, Malinvaud (1990). Lectures on Microeconomic Theory, North Holland

3
 MACROECONOMICS I
ECO-PG-C102
Master of Arts in Economics
Semester I (Core paper)

Total Credit: 4

UNIT-I:
National Income Accounting and Consumption Function: Circular Flow of Income— in one, two,
three and four sector model; Different forms of National Income Accounting– GDP, GNP, NDP,
NNP, etc.; Social Accounting; Consumption Function— Keynes’ Psychological Law of
Consumption; Kuznets’s Consumption Puzzle; Absolute Income Hypothesis; Friedman's
Permanent Income Hypothesis; Duesenberry's Relative Income Hypothesis; Ando-Modigliani's
Life-cycle hypothesis; The Random Walk Hypothesis.

UNIT-II:
Theories of Supply of Money: Definition of supply of Money and its importance in
Macroeconomics; Determinants of Money supply; High-powered Money; Money Multiplier and
Credit Creation by Commercial Banks; Factors affecting the Money Multiplier; IS-LM model—
derivation, property and shift of the curve; Effects of Monetary and Fiscal policies on IS-LM
curve.

UNIT-III:
Theories of Demand for Money: Fisher’s Quantity Theory of Money; Keynes Motives for
Liquidity preference—Transactions, Precautionary, Speculative; William Baumol’s Inventory
Theoretic Approach; James Tobin’s Liquidity Preference as Behaviour Towards Risk;
Friedman’s Restatement of Quantity Theory of Money.

UNIT-IV:
Investment Function: Tobin’s Q Theory of Investment; Keynesian Approach of Marginal
Efficiency of Capital and Investment– long run and short run; the Accelerator and Investment
Behavior– Influence of Policy Measures on Investment; Present Value Investment Criteria;
Jorgenson’s Neo-classical Theory of Investment.

SELECTED READINGS:
1. Ackley, Gardner (1978). Macroeconomics– Theory and Policy, New York: Macmillan.
2. Andolfatto, D. (2005), Macroeconomic Theory and Policy Preliminary Draft, Simon
Fraser University.
3. Branson, W. H. (2005). Macroeconomics Theory and Policy, New York: Harper and
Row.
4. Chamberlin, G. & Yueh, L. (2006), Macroeconomics, Thomson.
5. Dornbusch, R. and F. Stanley (2011). Macroeconomics, New York: McGraw Hill, Inc.
6. Edgmand, M. R. (1987). Macroeconomics– Theory and Policy, New Delhi: Prentice Hall.
7. Gregory Mankiw, N. (2012). Macroeconomics, New York: Macmillan.
8. Shapiro, E. (2010). Macro-Economic Analysis, New Delhi: Galgotia Publications (P)
Ltd.

4
 9. Gupta, S. B. (2016). Monetary Economics- Institutions, Theory and Policy, Delhi: S.
Chand.
10. Fama, Eugene F (1965). Random Walks in Security Prices, Financial Analysts Journal,
41: 55-59.

5
 INTRODUCTION TO STATISTICS
ECO-PG-C103
Master of Arts in Economics
Semester I (Core paper)

Total Credit: 4

Unit I:
Descriptive Statistics: Collection, organization and presentation of data; Measures of central
tendency and dispersion; Measures of association— Correlation, Concept of least squares and
lines of regression.

Unit II:
Theory of Probability and Distribution: Basic probability— Sample space, events, classical
and axiomatic definitions of probability, independence, conditional and marginal probability,
Bayes' formula, random variables, distribution function, variance and other moments.

Unit III:
Distribution theory: Discrete random variables— binomial, geometric and Poisson; Continuous
random variables— uniform, normal, exponential, logistic, bivariate normal, t, F, and chi-square;
Inequalities and limit results— Chebyshev’s inequality, weak law of large numbers and central
limit theorem.

Unit IV:
Statistical Inference: Estimation— Basic concepts, parameter, statistic, estimate, sampling
distribution, properties of estimators, Cramer Rao inequality, point and interval estimators; Point
estimation— method of moments, maximum likelihood method; Interval estimation— level of
confidence, confidence limits and critical region; Hypothesis Testing— Type I and II errors,
level, size, p-value, power; Testing hypothesis about mean and variance of normal population.

Selected Readings:
1. DeGroot, M. H. (1975), Probability and Statistics, Addison Wesley.
2. Freedman, D., R. Pisani and R. Purves (1998), Statistics, Norton and Co.
3. Hogg and Tanis (1989), Probability and Statistical Inference Maxwell Macmillan.
4. Chung, K.L. (1979), Introductory Probability Theory Springer-Verlag.
5. Freund, J. (1992), Mathematical Statistics, Prentice Hall.
6. Gnedenko, B. (1969), The Theory of Probability, Mir.
7. Hoel, P. and E. Stone (1971), Introduction to Probability Theory, Universal Book Stall.
8. Hoel, P. and E. Stone (1971), Introduction to Statistical Theory, Universal Book Stall.
9. Nagar, A.L. and R.K. Das (1983), Basic Statistics Oxford University Press.
10. Rao, C.R. (1965), Linear Statistical Inference and Applications, Wiley and Sons.

6
 MATHEMATICAL ECONOMICS
ECO-PG-C104
Master of Arts in Economics
Semester I (Core Paper)

Total Credit: 4

Unit I:
Linear algebra and matrices: Vector space, linear dependence, algebra of matrices— addition,
multiplication, transpose, inverse; Orthogonal, symmetric, idempotent and positive definite
matrices; Eigenvalues, eigenvectors and quadratic forms; Simultaneous equations with matrices;
Introduction to Input-output analysis.

Unit II:
Real analysis: Set theory, introduction to real number system, compactness and convergence;
Functions of one and several variables— algebraic, exponential and logarithmic functions;
Continuity at a point and over an interval; Differentiability; Limits of functions.

Unit III:
Differential calculus: Rules of differentiation; Derivatives of implicit functions, partial
derivatives; Constrained and unconstrained optimization techniques, with special emphasis on
application to problems from economics; indefinite integral of algebraic, exponential and
logarithmic functions; Define integrals; Introduction to methods in control theory.

Unit IV:
Difference and differential equations: Linear difference and differential equations; Second
order differential equations, with emphasis on examples from economics.

Selected Readings:
1. Hadley, G. (1987). Linear Algebra. Narosa Publishing House.
2. Simon, C.P. and Blume, L. (1994). Mathematics for Economists. W. W. Norton and
Company.
3. Smith. A.H. and Albrecht, W.A. (1966). Fundamental Concepts of Analysis. Prentice
Hall of India.
4. Sundaram R.K. (1966) A First Course in Optimization Theory. Cambridge University
Press.
5. Tarski, A. (1965). Introduction to logic and to the methodology of deductive science,
Oxford University Press.
6. Allen, R.G.D. (1976). Mathematical Analysis for Economists, Macmillan.
7. Chiang, A.C. (1974). Fundamental Methods of Mathematical Economics, McGraw Hill
and Kogakusha, New Delhi.
8. Solow, Robert M.; Dorfman, Robert; Samuelson, Paul (1958). Linear Programming and
Economic Analysis. New York: McGraw-Hill

7
 Second Semester

8
 MICROECONOMICS II
ECO-PG-C201
Master of Arts in Economics
Semester II (Core Paper)

Total Credit: 4

Unit I:
Exchange: The Problem and Solutions— Walras and Edgeworth – Competitive Equilibrium,
Core and the Equivalence Theorem Effect of Endowment Changes

Unit II:
Production: Structure of Simple General Equilibrium Production Models, General Activity
Analysis Models of Production, Linear Models— Non-Substitution Theorem, Supply Functions

Unit III:
General Equilibrium: Walrasian Equilibria— (i) Existence and Uniqueness: The Need for
Supporting Regulatory Mechanisms; (ii) Stability— The Need for Appropriate Distribution of
purchasing power and resources; (iii) Efficiency Properties of Walrasian Equilibria Non-
Walrasian Equilibria: (i) Non-Tatonnement Processes; (ii) Rationing Equilibria (iii) Effective
Demand (iv) Micro foundations of Macroeconomics

Unit IV:
Welfare Economics: Fundamental Theorems of Welfare Economics, Social Welfare Functions
and Arrow’s Impossibility Theorem, Externalities and Public Goods: Market Failures and,
Second best Problems

Selected Readings:
1. G. Jehle & P. Reny (2011) Advanced Microeconomic Theory, (3rd Edition) Prentice
Hall
2. Andreu Mas Colell, Michael D. Whinston, Jerry, R. (1995), Microeconomic Theory,
OUP.
3. Perloff, Jeffrey, M (2008). Microeconomics Theory and Applications with Calculus,
Pearson Addison, Wesley.
4. Sen, A. (1999), Microeconomics: Theory and Applications, Oxford University Press,
New Delhi.
5. Stigler, G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New Delhi.
6. Varian H R. (1992). Microeconomic Analysis, (3rd Edition) Norton International Student
Edition
7. Aleskerov, F, Bouyssou, D., Monjardet B, (2007). Utility Maximization, Choice and
Preference, Springer.
8. Schotter, Andrew (2009). Microeconomics: A Modern Approach. South Western, Cen
Gage Learning.
9. Angus_Deaton_and_John_Muellbauer (1986). Economics and Consumer Behavior, CUP.
10. E, Malinvaud (1990). Lectures on Microeconomic Theory, North Holland

9
10
 MACROECONOMICS II
ECO-PG-C202
Master of Arts in Economics
Semester II (Core Paper)

Total Credit: 4

UNIT I:
Theory of Income and Employment: A review of the Classical Approach and Keynesian
reaction— income and employment determination including money and interest; Classical theory
of wage, price and interest rate flexibility and assumption of full employment; Keynesian under
employment equilibrium– wage, price and interest rate rigidity, Real and monetary sector,
Interest rate policy; IS-LM Analysis– explaining the role of government fiscal and monetary
policies.

UNIT II:
Implication of Alternative Exchange Rate Regimes: Macroeconomic policy in an Open
Economy— the Mundell-Flemming Model; Stabilization of the Open Economy; Rational
expectations and rational expectations as efficient forecast; Disequilibrium in International
Payment, Adjustment Mechanisms under various Exchange Rate Regimes, Devaluation and
Exchange Control— The Monetarist Approach to the Balance of Payments.

UNIT III:
Inflation and Phillips Curve: Classical, Keynesian and Monetarist approaches to inflation;
Structuralist theory of inflation; Phillips curve— short run and long run, Okun’s law, trade-off
between inflation and unemployment; natural rate of unemployment; Adaptive and rational
expectations; Policies to control inflation.

UNIT IV:
Business Cycles and Balance of Payment: Concept of Trade/business cycle; Theories of
Schumpeter, Kaldor, Hicks, Samuelson; Goodwin’s model; Control of business cycles— relative
efficacy of monetary and fiscal policies.

SELECTED READINGS:

1. Ackley, Gardner (1978). Macroeconomics– Theory and Policy, New York: Macmillan.
2. Branson, W. H. (1997). Macroeconomics Theory and Policy, New York: Harper and
Row.
3. Dornbusch, R. and F. Stanley (2011). Macroeconomics, New York: McGraw Hill, Inc.
4. Edgmand, Michael R (1987). Macroeconomics– Theory and Policy, New Delhi: Prentice
Hall.
5. Gregory Mankiw, N. (2012). Macroeconomics, New York: Macmillan.
6. Shapiro, E. (2010). Macro-Economic Analysis, New Delhi: Galgotia Publications (P)
Ltd.
7. Gupta, S. B. (2016). Monetary Economics- Institutions, Theory and Policy, New Delhi:
S. Chand.

11
 8. Fama, Eugene F (1965). Random Walks in Security Prices, Financial Analysts Journal,
41: 55-59.

BASIC ECONOMETRICS
ECO-PG-C203
Master of Arts in Economics
Semester II (Core Paper)

Total Credit: 4

Unit I:
The classical linear regression model (CLRM): Ordinary Least Squares (OLS) —
Estimation and Inference, simple and multiple regression models; Functional forms and
structural change; Non-linear regression; Growth rates; Dummy variable regressors.
Unit II:
Violation of Classical Assumptions: Violations of OLS assumptions; Misspecification tests;
Heterscedasticity and autocorrelation; Multicollinearity; Aitken theorem and generalised least
squares (GLS) method; Restricted least squares estimator and testing procedures; Stochastic
regressors— errors in variables and its consequences; Hypothesis testing under multiple
parameter restrictions.

Unit III:
Maximum Likelihood Estimation (MLE): Likelihood function, properties of MLE; The
gradient and information matrix; Numerical Optimization Methods; The likelihood ratio, Wald,
and Lagrange multiplier tests.

Unit IV:
Simultaneous Equations System: Structural and reduced forms, least squares bias problem,
Formalization of identification problem— rank and order conditions; Recursive Models –
Methods of Estimation; 1LS, 2SLS, 3SLS; The method of instrumental variables – identification
and choice of estimation method.

Selected Readings:
1. Dongherty, C. (1992). Introduction to Econometrics. Oxford University Press, New York
2. Gourieroux C. A. Monfort. (2002). Statistics and Econometric Models. Cambridge
University Press Vol. 1 and 2.
3. Maddala, G.S. (Ed.). (1993). Econometrics Methods and Application. Aldershot (2
Vols.).
4. Wooldridge, J.M. (2000). Introductory Econometrics. Southwestern
5. Baltagi, B.H. (1998). Econometrics, Springer, New York
6. Goldberger, A.S. (1998). Introductory Econometrics. Harvard University Press.
Cambridge, Mass
7. Gujarati, D.N. and Sangeetha, (2007). Basic Econometrics (4th Edition), McGraw Hill,
New Delhi
8. Maddala, G.S. (1997). Econometrics. McGraw Hill, New York

12
 9. Pindyck, R.S. and Rubinfield D.L. (1976). Econometric Models and Economic Forecasts.
McGraw Hill Kogakusha, Tokyo
10. Madnani, G.M.M. (2008), Introduction to Econometrics- Principles and Applications.
OUP.
FOUNDATIONS IN RESEARCH METHODS AND DATA ANALYSIS

ECO-PG-O204

Master of Arts in Economics

Semester II (Core Paper)

Total Credit: 4

Unit I:

Introduction to Research in Social Sciences: Meaning and Significance of Social

Science Research, Research in Science and Non-Science Disciplines; Approaches to
Research— Descriptive vs Analytical, Qualitative vs Quantitative, Applied vs
Fundamental, Conceptual vs Empirical; Research Process in Economics; Formulating the
Research Problem, Survey of Literature, Critical Reading, Theorizing the Research,
Formulation of hypotheses, The Research Design.

Unit II:

Types and Sources of Data: Cross-Section, Time-Series, Panel and Pooled Cross-Section
Data, Secondary Data Sources— Availability, Features and Methods of Data Collection,
NSSO, CSO, ASI, RBI, MSME, WBES, Economic Survey, EPWRF, Population Census,
Economic Census, Agricultural Census, Livestock Census, Other Databases (PROWESS
and WITS) etc., Primary Data— Observation, Interview and Questionnaire/Schedule;
Pilot Survey, Reliability and Validity

Unit III:

Sampling, Survey and Data Compilation: Population and Sample, Sample Size, Types of
Sampling— Probability and Non-probability Sampling; Error Minimization, Evaluation
of Time and Cost, Sample Weights, Choice of Sampling Design; Data Extraction (using

13
 MS Access and SPSS), Data Entry, Editing, Cleaning and Coding (using MS Excel),
Classification and Tabulation (using MS Excel and SPSS).

Unit IV:

Data Analysis: Descriptive Statistics, Graphs, Correlation, Regression Analysis— Simple

and Multiple Regression; Dummy Variables and its uses; Problems in Econometric
Estimation— Endogeneity and Causality; Interpretation of Results, Presentation of
Results, Writing a Research Report, References and Bibliography, Oral Presentation,
Copyright and Plagiarism.

14
Selected Readings:
1. Chandrasekhar, C. P. and Tilak, Jandhyala B G (eds.) (2001), India's Socio-
economic Database: Surveys of Selected Areas, Tulika, Delhi.

2. Ethridge, Don. (1995) Research Methodology in Applied Economics. Ames IA:

Iowa State University Press.

3. Goode & Hatt (2006): Methods in Social Research, McGraw Hill, California

4. Gujarati, D. (2014), Econometrics by Example, Palgrave Macmillan, Hampshire,

UK

5. Manna, G.C. (2014), Data on Manufacturing Sector: Current Status and

Challenges. In Kathuria, V., Raj, R.S.N. and Sen, K. (eds), Productivity in Indian
Manufacturing: Measurements, Methods and Analysis, Routledge, New Delhi.

6. Newbold, P., Carlson, W.L. and Thorne, B. (2007), Statistics for Business and
Economics, Pearson Education, New Delhi.

7. Rao, J. R. (1968), Indian Statistical System, IIPA, New Delhi.

8. Saluja, M. R. (1972), Indian Official Statistical Systems, Statistical Publishing

Society, and the Indian Econometric Society, Calcutta.

9. Saluja, M.R. (2004), Industrial statistics in India: Sources, Limitations and Data
Gaps, Economic and Political Weekly, 39(48):5167-5177.

10. Steven A. Greenlaw (2005) Doing Economics: A Guide to Understanding and

Carrying Out Economic Research

15
 Third Semester

16
 INDIAN ECONOMY
ECO-PG-O301
Master of Arts in Economics
Semester III (Core paper)

Credits: 4

Unit I:
Economic Development and Poverty: Approaches to development; Development
indicators— PQLI, HDI, Gender related Development index and Gender Empowerment
Measure; Status and trend of human development; Development strategy after
independence; Poverty— magnitude and determinants; Poverty alleviation programmes
— IRDP to MGNREGA; Poverty and inequality; debate on poverty in the 1990s.

Unit II:
Structural Change, Employment and Demographic Features: Growth and structural
changes in the National and State economies— Regional disparity in post reforms period;
Achieving inclusive growth; Employment and growth— Employment and
unemployment; Labour Laws and labor markets— Recent strategies and policies for
employment generation; Demographic features and trends— National population
policies; Privatization and disinvestments debate; Recent trends in industrial growth and
diversification; Importance and performance of SSIs and Cottage industries; Performance
of service sectors.

Unit III:

Agriculture and Rural economy: Productivity and growth in agriculture, Land reforms,
Agricultural price policy; Agricultural finance policy; Food security and Public
distribution system, Agriculture and WTO; Industrial policy reforms, Public Sector
Enterprises and their performance, Land distribution and land use pattern— its
implication for development, forests, water and other mineral resources in the region;
Agriculture-pattern, practices (shifting cultivation), problems and prospects, issues in
agricultural productivity; Diversification of rural employment— the role of non-farm
sector; growth and composition of rural non-farm employment; Rural credit market—
characteristics, nature and spread; Microcredit and SHGs.

Unit IV:
Economy of the India’s North Eastern Region: North Eastern Region as an economy;
Major characteristics, Structure of economy and its transformation, constraints to
development; comparison with the Indian economy, demographic features of the NE
economy; Poverty, inequality and human development— Status and trend; Exclusion and
the need to have inclusive development; Economic Infrastructure— power, road,
communication and banking; infrastructure deficiency and regional economic
development; Status and structure of industries— constraints to industrialization,
industrial policy-North East Industrial and Investment Promotion Policy (NEIIPP) 2007;
Employment and unemployment— status, trends and composition; implications for the

17
 development; Migration— inter region and cross boarder; Migration and regional
economic development; New development initiatives in NER, Vision Document 2020;
Look East Policy and the NE Region.

Suggested Readings:
1. Bhagwati, J. N., and P. Desai (1970), India: Planning for Industrialization OUP.

2. Agarwal, A.K. (1987 Ed.): Economic Problems and Planning in North East India,
Sterling Publishers.

3. Alam, K. (ed.) (1993): Agricultural Development in North East India:

Constraints and Prospects, Deep and Deep, ND.

4. Banerjee and Kar (1999 Ed.): Economic Planning and Development of North-
Eastern States, Kanishka, ND.

5. Menon, S. (ed.) (2007): India’s North East Economy-Problems and Prospects,

ICFAI Univ. Press, Hyd.

6. Ahluwalia, I.J and I.M.D. Little (eds.) (1998): India’s Economic Reforms and
Development, OUP, ND.

7. Brahmananda, P.R. and V.R. Panchmukhi (eds.) (2001): Development Experience

in Indian Economy: Inter-State Perspectives, Bookwell, Delhi.

8. Dantwala, M.L. (1996): Dilemmas of Growth: The Indian Experience, Sage, New
Delhi.

9. Joshi, V. and I.M.D. Little (1999): India: Macro Economics and Political
Economy, 1964-1991, OUP, New Delhi.

10. Tendulkar, S.D and T.A. Bhavani (2007): Understanding Reforms- Post 1991
India, OUP.

18
 INTERNATIONAL TRADE AND FINANCE
ECO-PG-C302
Master of Arts in Economics
Semester III (Core Paper)

Total Credit: 4

Unit I:
Pure Trade Theory in General equilibrium framework: Tools for Analysis of International
Models; Why Countries Trade; General Equilibrium as the basis for Trade; Inter Industry Trade
Models— Classical approach, Neo-classical approach; Imperfect Competition Models; Models
relating to Intra Industry Trade; Trade and Welfare, Gains from Trade

Unit II:
International Trade Policy: Price support & Production Quotas; Import Quotas & Tariff; Two
part tariff; Tariff and its different types, Terms of Trade effect of Tariffs, Theory of Optimum
Tariff, Tariff and Income Distribution, The Metzler Paradox, Tariff Games; Effective Rate of
Protection; Import quotas, Quota versus Tariff; Theory of Strategic Trade Policy; Other non-
Tariff barriers to trade; Cartel as a Trade Restriction; Theory of Custom Union: Net Welfare
Effects

Unit III:
Open economy: Foreign Trade and National Income; Balance of Payments, Disequilibrium in
BOP, BOP adjustment through variation in exchange rate, Devaluation and BOP adjustment,
Elasticity Approach, Marshall Lerner Condition, The Absorption Approach, J-Curve
Phenomenon, BOP adjustment Through Expenditure Policies, Monetary & Fiscal Policy
Approach in achieving internal and external balance.

Unit IV:
International Finance: Positive and Welfare Effects of Portfolio Investment; Equilibrium in
international Money market; Foreign Exchange market; Determination of Exchange rate—
Purchasing Power Parity, Interest Parity; Monetary Approach; International Capital Flow;
International debt— Debt Forgiveness, Risk Aversion and International Portfolio Diversification.

Selected Readings:
1. Chacholiades, M. (2009), The Pure Theory of International Trade, Aldine
Transaction, New Brunswick.
2. Chacholiades, M. (1981), Principles of International Economics, Mc-Graw Hill Book
Company, New Delhi.
3. Krugman, P.R. and Obstfeld, M. (2013), International Economics: Theory and Policy,
8th Edition, Pearson Education, New Delhi.
4. Kindleberger, C.P. (1998), International Economics, 8th Edition, Richard D. Irwin,
Inc., USA.
5. Mannur, H.G. (1996), International Economics, 2nd Revised Edition, Vikas Publishing
House Pvt. Ltd., New Delhi.
6. Sodersten, B. (1984), International Economics, 2nd edition, Macmillan, Hong Kong.

19
 7. Sodersten, B. and Reed, G. (1994), International Economics, 3rd edition, Macmillan,
New Delhi.
8. Salvatore, D. (2000), International Economics, John Wiley, London.
9. Thompson, H. (2011), International Economics: Global Markets and Competition, 2nd
edition, Cambridge University Press India Pvt. Ltd., New Delhi.

**Third Semester Elective Papers**

**Two Elective papers (Elective 1 and 2) must be

chosen from the list given below**

20
 ADVANCED ECONOMETRICS
ECO-PG-E303
Master of Arts in Economics
Semester III (Elective Paper)

Total Credit: 4

Unit I:
Models with Limited Dependent and Qualitative Variables:
Binary choice models— linear probability model, probit, and logit models; Multi response
models— multinomial logit and ordered probit models; Truncated and Censored regressions;
Tobit model.

Unit II:
Dynamic Econometric Models: Autoregressive and Distributed-Lag Models— Estimation of
Distributed-Lag Models; Estimation of Autoregressive Models; Exogeneity tests, Wu-Hausman
test.

Unit III:
Introduction to Time Series Analysis: Stationarity; Autocorrelations and Partial Auto-
correlation Functions; Unit roots and Units roots tests; ARIMA modelling; ARCH/GARCH
models; VAR models and Granger causality; Co-integration.

Unit IV:
Panel Data Regression Models: Estimation of Panel Data Regression Models— the Fixed
Effects Approach, the Random Effects Approach; Fixed Effects (LSDV) versus the Random
Effects model.

Selected Readings:
1. Cameron, C. and Trivedi P. (2005): Micro Econometrics, Cambridge: Cambridge Univ.
Press.
2. Davidson and MacKinnon (2004). Econometric Theory and Methods, Oxford University
Press.
3. Goldberger (1991). A Course in Econometrics. Harvard University Press.
4. Greene (2003). Econometric Analysis. 5 edition, Prentice Hall.
th

5. Johnston and Di-Nardo (1997). Econometric Methods. 4 edition, McGraw-Hill.

th

6. Maddala (1982). Limited-dependent and Qualitative Variables in Econometrics.

Cambridge University Press.
7. Wooldridge, J.M (2002). Econometric Analysis of Cross Section and Panel Data. MIT
Press.

21
 INDUSTRIAL ECONOMICS
ECO-PG-E304
Master of Arts in Economics
Semester III (Elective paper)

Total Credit: 4

Unit I:
Industrial Organisation and Market Structure: Technology, production cost and demand,
Optimum size of firm; Review on theory of firm & industry; Competitive equilibrium and
welfare; Equilibrium with simultaneous move (Quantity & Price) — Free entry equilibrium,
Welfare, etc.; Best response & stability, uniqueness; Equilibrium with sequential move; Reaching
an agreement; Issues in entry deterrence; Repeated game; Alternative motives of firm, Industrial
efficiency— Concept & its measurement

Unit II:
Innovation & Spill over, Agglomeration: Classification of process innovation; Innovation as a
race, Expected date of discovery, Case for a single firm & case for two firm, Equilibrium in
R&D race, Society’s optimal R& D level, Innovator choice of R&D level for a given
duration of patent, Patent, Duration of patent, Society’s optimal duration of patent, Optimal
patent & economic welfare, Adaption and diffusion of innovation, Innovation and durability
trade-off, Warranties, Economics of compatibility and standards, Advertising,
Agglomeration and choice for industrial location

Unit III:
Industrial Finance, Uncertainty & Insurance: Sources of industrial finance (short & long
term); Cost of capital to industries; Capital structure decision; working capital financing;
long term asset financing, Institutions for industrial finance, Venture capital financing,
Uncertainty in industrial organisation, Determinants of demand for insurance

Unit IV:
Demand and Supply of Industrial Input: Input demand and its pricing under perfect and
imperfectly Competitive Industry, Overtime pay & supply of labour service, Substitution & scale
effect, Minimum wage law, Time & goods constraint, Reservation wage, Non labour income,
Unemployment Compensation full disability, Welfare system

Selected Readings:
1. Shy, Oz. (1996), Industrial Organisation: Theory and Applications, MIT Press.
2. Tirole, J. (1988, 2009), The Theory of Industrial Organization, Prentice-hall Pvt Ltd.
3. Tremblay, Victor J. and Tremblay, Carol Horton. (2012), New Perspectives on Industrial
Organisation with Contributions from Behavioural Economics & Game Theory, Springer,
USA.
4. Church, J. & Ware, R. (2000), Industrial Organization: A Strategic Approach, McGraw-
Hill.

22
 HISTORY OF ECONOMIC THOUGHT
ECO-PG-E305
Master of Arts in Economics
Semester III (Elective Paper)

Total Credit: 4

UNIT-I
Nature and Importance of Economic Thought: Mercantilism— Views on Trade, Money and
Prices, Wages and Employment; Physiocracy— Natural Order; Net product and Circulation of
Wealth.

UNIT-II
Classical Thought: Adam Smith— Theories of Value, Distribution and Growth; Ricardian
Economics— Value Analysis, Theories of Trade and Distribution, Views on Machinery and
Employment, Ricardo-Malthus glut controversy.

UNIT-III
Marxian Economics: From Harmony to Class struggle, Historical Materialism and Marx’s
Interpretation of History, Dialectical Materialism, Development and Decay of Capitalism.

UNIT-IV
Essential features of Marginalism: Jevon’s Theory of Value; Walras’s Theory of General
Equilibrium; Overview of Marshall’s Contribution.

Selected Readings:
1. A.K. Dasgupta (1986): Epochs of Economic Theory, Oxford University Press, New
Delhi.
2. D.P.O. Brien (1975): The Classical Economists, London, Oxford University Press.
3. Dobb, Maurice (1975): Theories of Value and Distribution since Adam Smith, CUP.
4. E. Mandel (1971): Marxist Economic Theory, Rupa & Co.
5. Eric Roll (1992): History of Economic Thought, Faber and Faber.
6. Gide, C. and Rist C. (1948): A History of Economic Doctrines, George G. Harap & Co.
7. Krishna Bhardwaj (1978): Classical Political Economy and Rise to Dominance of Supply
and Demand Theories, Oxford University Press.
8. M. Blaug (1983): Economic Theory in Retrospect, Vikas Publishing House, 3rd Edition
(Cambridge University Pub.).
9. Schumpter, J.A. (1954): History of Economic Thought, Oxford University Press.

23
 GLOBALIZATION AND DEVELOPMENT
ECO-PG-E306
Master of Arts in Economics
Semester III (Elective Paper)

Total Credit: 4

Unit I:
Historical Perspective and Economics of Globalization: Globalization and its genesis—
Growth and trend of globalization; Similarities and differences of the present globalization with
an earlier epoch of globalization during the late nineteenth century; Emergence of developing
countries in the world economy; Economics of globalization— Economic characteristics,
manifestations and drivers of globalization in the present phase; Economic impact of
globalization and its consequences for development; Globalization with some focus on the gap
between rich and poor.

Unit II:
Globalization and Macroeconomic Theories: Growing interdependence and deepening
integration of economies; Globalization and macroeconomic objectives and shifted the focus of
macroeconomic policies in developing countries; Debate on the for and against the globalization;
Orthodox prescription of markets and globalization as a strategy of development; Critique of its
theoretical foundations in terms of economic theory and examines lessons from the development
experience during the second half of the twentieth century.

Unit III:
Institutions and Rules: Institutions and cross-border movement of goods, services, technology
and finance; WTO, GATT, IMF, World Bank and their emerging rules in the world economy;
Asymmetric and unfair global rules in the multilateral trading system and the international
financial system.

Unit IV:
National and International Context: Exploring how globalization could be made more
conducive to economic development for the poor countries and poor people; Introducing
corrective and redesign strategies to bring egalitarian development; Reshaping the rules of the
game and contemplate some governance of globalization to create more policy space for the
pursuit of national development objectives.

Selected Readings:
1. Amin, Samir (2003). Obsolescent Capitalism: Contemporary Politics and Global
Disorder, Zed Books, Delhi.
2. Bairoch, Paul (1993). Economics and World History: Myths and Paradoxes, University
of Chicago Press, Chicago.
3. Baker, Dean, Gerald Epstein and Robert Pollin eds. (1998).Globalization and
Progressive Economic Policy, Cambridge University Press, Cambridge.
4. Bhagwati, Jagdish (2004). In Defence of Globalization, Oxford University Press, Oxford.

24
 5. Chang, Ha-Joon (2002). Kicking Away the Ladder: Development Strategy in Historical
Perspective, Anthem Press, London.
6. Deepak Nayyar (2006). Stability with Growth: Macroeconomics, Liberalization and
Development, Oxford University Press, Oxford.
7. Findlay, Ronald and Kevin H. O’Rourke (2007). Power and Plenty: Trade, War and the
World Economy in the Second Millennium, Princeton University Press, Princeton.
8. Friedman, Thomas L. (2007). The World is Flat, Farrar: Straus and Giroux.
9. Rodrik, Dani (2007). One Economics, Many Recipes: Globalization, Institutions and
Economic Growth, Princeton University Press, Princeton.
10. Stiglitz, Joseph (2012). Globalisation and its Discontents, Penguin Books, Gurgaon.

25
 PUBLIC FINANCE
ECO-PG-E307
Master of Arts in Economics
Semester III (Elective Paper)
Total Credit: 4

Unit I:

Introduction to Public Finance: Definition and scope of Public economics, need for public
sector, major functions- allocative functions, distributive functions, stabilization function and
coordination of budget function; Allocation and Distribution of Public Choice- social goods,
market failure, provision of social goods comparison with private goods, mixed goods, merit
goods; market provision of non-rival goods; Efficient provision of private goods and public
goods; approaches to distributive justice- endowment based criteria, utilitarian criteria,
egalitarian criteria; Public Choice- direct democracy, representative democracy Leviathan
Hypothesis.

Unit II:

Public expenditure: Role of public expenditure in developing countries; progressive and

regressive public expenditure law— Peacock-Wiseman Hypothesis; expenditure evaluation
principle— types of benefits and costs and weights to costs and benefits, efficiency of projects,
discounting and cost of capital,; issues in public projects.

Unit III:

Taxation and Public Debt: Cannons of taxation, theory of tax incidence— nature, types and
measuring incidence, partial equilibrium view and general equilibrium view; macro aspects of
incidence; Tax distortion in partial and general equilibrium framework, magnitude of excess
burden; classical view of public debt; effects of public debt on economy; principles of debt
management.

Unit IV:

Fiscal Federalism and Fiscal Policy Principles: Fiscal federalism in India, constitutional
provisions, Finance commission and NITI Ayog (Earlier Planning Commission); devolution of
resources and grants; Centre and state financial relation in India, Objectives of fiscal policy,
interdependence of fiscal and monetary policies, budgetary deficits and its implications.

26
Selected Readings

1. Musgrave, R.A and Musgrave, P.B (2004) Public Finance in Theory and Practice, Tata
MacGraw Hill, New Delhi.

2. Stiglitz, J (2000) Economics of the Public Sector, 3rd Edition, WW Norton Company,.

3. Hillman, A. I (2009) Public Finance and Public Policy: Responsibilities and Limitation of
Government, 2nd Edition, CUP.

4. Wellisch, D. (2004) Theory of Public Finance in a Federal State, CUP, UK.

5. Rosen, S.N and Gayer, T. (2008) Public Finance, 8th Edition,Tata MacGraw Hill,

6. Hindricks, J and Myles, G.D. (2006) Intermediate Public Economics, MIT Press.

7. Gruber, J (2011) Public Finance and Public Policy, Worth Publisher, NY.

27
 FINANCIAL ECONOMICS
ECO-PG-E308
Master of Arts in Economics
Semester III (Elective Paper)

Total Credit: 4

UNIT I:
BASIC CONCEPTS IN FINANCE-I: Introduction to Financial Economics, Subject Matter,
Scope and Relevance; Financial Markets— Financial Instruments, Financial Claims-Relation
between Stocks and Flows; Introduction to Corporate Finance-Forms of Business Organization-
Goals of Financial Management, The Agency Problem; Basic Concepts in Finance— Assets and
Liabilities; The Balance Sheet; Profit and Loss Account; Net Working Capital; Liquidity; Time
Value of Money— Rationale, Net Present Value, Practical Applications.

UNIT II:
BASIC CONCEPTS IN FINANCE-II: Statement of Changes in Financial Position; Cash Flow
Statement; Funds Flow Statement; Ratio Analysis— Different Kinds of Financial Ratios,
Calculation and Importance in Financial Analysis; Investment Criteria— Internal Rate of Return,
Rate of Interest— Period, Compounded and Effective Annual Rates of Interest; Risk and Return
— Importance, Measurement of Risk and Return of an Asset; Measurement of Risk and Return
of a Portfolio; Systematic and Unsystematic Risk.

UNIT III:
SECURITY MARKETS: The Supply of Securities— Characteristics, Government Bonds,
Index Linked Bonds, Pure Discount Bonds, Spot Yields, Coupon Paying Bonds; The Cost of
Capital— Debt and Equity; Costs of Debt, Equity and Preferred Stock; Capital Market—
Primary Market and Secondary Markets; Shares and Debentures— Types and issuance; The
Stock Exchange— Methods of Trading, Over the Counter Exchange of India, Recent
Developments in the Indian Stock Market.

UNIT IV:
STOCK MARKET EFFICIENCY: Security Markets and their Efficiency— The Efficient
Market Hypothesis; Weak, Semi-Strong, Strong Forms of Efficiency; The Capital Asset Pricing
Model (CAPM)— Estimation of Betas, Validity of CAPM; The Arbitrage Pricing Theory, Its
Alternative Approach and importance in Finance; Stock Indices— BSE Sensex, BSE 100, BSE
Bankex, Dow Jones Industrial Index.

Selected Reading List

1. Houthakkar, H.S. and Williamson, P.J. (1998). The Economics of Financial Markets,
Oxford University Press, New Delhi.
2. Jurgen Eichberger and Ian R Harper. (1998). Financial Economics, Oxford University
Press, London.
3. Khan, M Y. and Jain, P K. (2004). Financial Management: Text, Problems and Cases,
Tata McGraw Hill, New Delhi.

28
 4. Prasanna Chandra. (2004). Financial Management: Theory and Practice, Tata McGraw
Hill, New Delhi.
5. Ross, Stephan A; Rudolph W.; Westerfield and Jaffe, Jaffrey. (2004). Corporate Finance,
McGraw Hill, Irwin.
6. Van Horne, J.C. (2005). Financial Management and Policy, Prentice-Hall, New Delhi.

29
 ECONOMICS OF SOCIAL SECTOR
ECO-PG-E309
Master of Arts in Economics
Semester III (Elective Paper)

Total Credit: 4

Unit I:
Introduction to Economics of Education: Education as consumption and investment goods;
Human capital— the concept, components of human capital; Historical developments in the
human capital theory; Human capital and human development; Public and private education;
Cost of education— private costs and social costs; Education, employment and income;
Education, poverty and income distribution.

Unit II:
Educational Planning and Financing: Approaches to educational planning; Economics of
educational planning in developing countries with special reference to India; Educational
planning and the problem of educated unemployment and brain drain; Role of financing in the
development of education; Equity and efficiency effects of financing education in India.

Unit III:
Introduction to Economics of Health: The concept of health and health care; life expectancy
and mortality rates, morbidity— Health as consumption and investment goods; Role of health in
economic development; Comparison of education and health; Health as human capital;
Determinants of health— Poverty and malnutrition; Economic dimensions of health care—
Demand and supply of health Care.

Unit IV:
Financing and Institutional Issues in Health Care: Resource mobilization and utilization of
health care in India; Pricing and subsidies to health sector; Equity and efficiency effects of health
care financing; Health care and resource constraints; Inequalities in health and health care in
India; Institutional issues in health care delivery; Implications of GATT for health sector and
financing.

Selected Readings
1. Becker, G.S. (1974). Human Capital. 2nd edition, NBER, New York.
2. Blaug, Mark (1972). Introduction to Economics of Education, London: Penguin.
3. Folland, S., A.C. Goodman, and M. Stano (2001). The Economics of Health and Health
Care. New Jersey: Prentice Hall.
4. Klarman, H.E. (1995). The Economics of Health. New York: Columbia University Press.
5. Panchamukhi, P.R. (1980). Economics of Health: A Trend Report. ICSSR Survey, New
Delhi: Allied Publisher.
6. Phelps, Charles E. (2010). Health Economics. 4th edition, Prentice Hall.
7. Tilak, J.E.G. (1989). Economics of Inequality in Education. New Delhi: Sage.
8. Walker, Melanie, and Elaine U. (eds.) (2007). Amartya Sen’s Capability Approach and
Social Justice in Education. Macmillan.

30
 9. William, Jack (2000). Principles of Health Economics for Developing Countries. WBI
Development Studies.
10. World Bank (1993). The World Development Report 1993: Investing in Health. Oxford
University Press.

31
 ECONOMICS OF IDENTITY AND DISCRIMINATION
ECO-PG-E310
Master of Arts in Economics
Semester III (Elective Paper)

Total Credit: 4

Unit I:
Concepts of Identity and Institutions: Meaning of identity and social institutions— ethnic,
religious, culture and political identity; Tribe, caste and community; Concept of institution.

Unit II:
Equal rights, unequal opportunities: Introduction to inter-caste disparity; Survey of economic
literature dealing with caste inequality; Regional identity and inter-regional disparities; Gender
identity and disparities.

Unit III:
Social groups and economic performance: Measuring discrimination; Beyond the labour
market; Caste, religion and gender vs economic performance; Economics of ethnicity, identity
formation, politics and ethnic conflict.

Unit IV:
Remedies for inter group disparity and conflict: Affirmative action and compensation issues;
State measures and its consequences; civil society organizations and community for inter group
disparity and regionalism.

Selected Readings:
1.Sen, Amartya (1998). “On Economic Inequality”. New York: Oxford University Press.
2.Singha, K. and Singh, M. A. (eds.) 2016: Identity, contestation and development in
Northeast India, Routledge.
3. Thorat, Sukhadeo (1979): Passage to Adulthood: perceptions from below, In Sudhir
Kakkar (editor), Identity and Adulthood, Oxford University Press,
4. Deshpande, Ashwini (2000). Recasting Economic Inequality, Review of Social Economy,
Vol 58, No. 3, pp. 381-399
5. Akerlof, George (1984). The economics of caste and of the rat race and other woeful
tales, The Quarterly Journal of Economics, Vol. 90, No. 4,
6.Madheswaran, S. and Paul Attewell (2007): Caste discrimination in the Indian urban
labour market, Economic and Political Weekly, Vol. XLII, No. 41, October 13.
7.Deshpande, Ashwini (2001): Caste at Birth? Redefining disparity in India, Review of
Development Economics, Vol. 5 No. 1.
8.Michael Reich. (1981). Racial Inequality: A Political-Economic Analysis, Princeton, New
Jersey: Princeton University Press.
9.Deshpande, Ashwini (2007): Overlapping identities under liberalization: gender and caste
in India, Economic Development and Cultural Change, Volume 55, No. 4.
10. Weiner, Myron (1978): Sons of the Soil— Migration and Ethnic Conflict in India, OUP.

32
 STRUCTURE AND GROWTH OF INDIAN INDUSTRIES
ECO-PG-E311
Master of Arts in Economics
Semester III (Elective Paper)

Total Credit: 4

Unit I:
Industrialisation and Development: On the centrality of industry; Autonomous industrialization
vs. State-aided; Import Substitution vs Export Promotion; Late industrialisation and premature
oligopoly.

Unit II:
Industrial Structure in India: (i) Nature of Indian monopoly— Representative unit and
oligopolistic behaviour; Implications for prices, output & technical change; Effects of
deregulation and liberalisation. (ii) Role of foreign capital— Forms of foreign investment;
Balance of payments impact. (iii) Small-scale sector: Structural characteristics and growth;
empty middle and efficiency. (iv) Public Sector in theory & practice— Case for public
investment; structural evolution of India’s public sector; question of “efficiency”; privatisation
debate and experience.

Unit III:
Growth and Stagnation - India’s Post-Independence Industrial Development Record: (i)
Phases of industrial development; (ii) Assessing Import Substitution - Indian Experience—
agricultural constraint; Income distribution and demand; Public investment and growth;
neoclassical critique; Explaining liberalisation and neo-liberal reform.

Unit IV:
Experience with Liberalisation: (i) Industrial growth during the 1980s— Growth process during
the 1980s; changing role of finance; Structural change during the 1980s. (ii) Industrial growth
during the 1990s— Industrial reform during the 1990s, Licensing reform, De-reservation
Reform, Anti-trust and competition policy, Import liberalisation, Foreign investment after
liberalisation; growth process during the 1990s; financing of investment. Some international
comparisons and implications

Selected Readings:
1. Ahluwalia, Isher J. (1985), Industrial Growth in India: Stagnation since the Mid-Sixties,
Delhi: Oxford University Press.
2. Bagchi, A.K. (1972), Private Investment in India, 1900-39, Cambridge: Cambridge
University Press.
3. Bagchi, A.K. (1987), Public Intervention and Industrial Restructuring in China, India
and the Republic of Korea, New Delhi: ILO-ARTEP.
4. Bhagwati, Jagdish & Padma Desai (1970), Planning for Industrialisation: Trade and
Industrialisation Policies 1950-66, Delhi: Oxford University Press.
5. Nayyar, Deepak (1994), Industrial Growth & Stagnation: The Debate in India, Delhi:
Oxford University Press.

33
 6. Gokarn, S., A. Sen and R. Vaidya (2004). The Structure of Indian Industry. Delhi:
Oxford University Press.
7. Sen, K. (2008). Trade Policy, Inequality, and Performance in Indian Manufacturing.
London: Routledge.
8. Kathuria, V., Raj, R.S.N. and Sen, K. (2014). Productivity in Indian Manufacturing:
Measurements, Methods and Analysis, Routledge, New Delhi.
9. Panagariya, Arvind. (2008). India: The Emerging Giant. New Delhi: Oxford University
Press.
10. Mookherjee, D. (1995), Indian Industry: Policies and Performance, Oxford: Oxford
University Press.

34
 Fourth Semester

35
 Dissertation
ECO-PG-C401
Master of Arts in Economics
Semester IV (Core Paper)

In the IV semester there shall be one full compulsory paper (dissertation) of 4 credits on
Fieldwork/Internship/Experimental Work/Project Work. The students will be distributed among
the faculty members at the end of the III semester, depending on the area of interest (of the both
the faculty and students). They will submit dissertations and defend their findings before the
entire faculty plus one external examiner at the end of the IV semester.

The average of marks given by internal faculty members shall be counted out of 50% and the
external examiner shall mark out of the remaining 50%.

The duration of Fieldwork (if needed) should be two to three weeks and this should be completed
during the winter vacation between III and IV semesters.

36
 **Fourth Semester Elective Papers**

**Three Elective papers (Elective 3 to 5) must be

chosen from the list given below**

37
 ECONOMICS OF GROWTH AND DEVELOPMENT
ECO-PG-E402
Master of Arts in Economics
Semester IV (Elective paper)
Total Credit: 4

UNIT I
Concept of Growth and Development: Meaning of growth and development; Measuring
development– Income measures, Basic Needs Approach, PQLI and HDI and Capabilities
Approach; Sustainable development.

UNIT II
Theories of Development: Contributions of Adam Smith, Ricardo, Karl Marx and Schumpeter;
Nelson’s low level equilibrium trap; Mydral theory of backwash effect; Nurkse-Roden’s
balanced growth theory; Hirschman-Singer’s unbalanced growth theory; Theory of dualism—
Lewis and Fei-Ranis, Hariss-Todaro model; Big push theory.

UNIT III
Theories of Growth and Technology: Harrod-Domer growth model, Harrod's theory and the
dynamic instability of the capitalist system; Neo-classical growth model of Solow, Meade,
Kaldor-Pasinetti; Technological progress in the neo-classical paradigm; Neutral technological
progress— Harrod and Hicks; Disembodied and embodied technological progress.

UNIT IV
Sectoral Aspects of Development: Causes, consequences and controversies of population
growth and the quality of life; Education and Population– Investing in education and health, the
human capital approach, women and education, educational systems and development; O-Ring
theory; Cost and benefits of population growth; Malthusian population trap; Impact of migration
on urbanisation and urban unemployment.

Selected Readings:
1. Adelman, Irma (1961): Theories of Economics Growth and Development, Stanford
University Press, Stanford.
2. Higgins, B. (1959): Economic Development, W.W. Norton, New Delhi.
3. Todaro, Michael P. Stephen C. Smith (1996): Economic Development, Pearson
Education Pvt. Ltd., New Delhi.
4. Hayami, Y. and Yoshihisa Godo (2009): Development Economics– from Poverty to the
Wealth of Nations, Oxford University Press, New Delhi.
5. Ray, Debraj (2003): Development Economics, Oxford University Press, New Delhi.
6. Meier, M. Gerald and James E. Rauch (2000): Leading issues in Economic Development,
Oxford University Press: New Delhi.
7. Sen, Amartya (2001): Development as Freedom, Oxford University Press , New Delhi
8. Dreze, Jean and Amartya Sen (2005): India– Development and participation, OUP, New
Delhi
9. Ghatak, Subrata (1986): An Introduction to Development Economics, Rutledge, UK.
10. Kindleberger, C. P. (1977): Economic Development, McGraw Hill.

38
 ENVIRONMENTAL ECONOMICS
ECO-PG-E403
Master of Arts in Economics
Semester IV (Elective paper)

Total Credit: 4

Unit I:
Economics of Natural Resource: Renewable resources and its optimal use; Exhaustible
resources and its optimal use; Intertemporal Production and Consumption decision— Depletable
resources; Measuring & mitigating natural resource scarcity; Resource extraction path for
different types of market; Condition for optimal depletion of resources; Cost function for non-
renewable resources.

Unit II:
Welfare, Social Sector and Environment: Review of welfare theory in context of environment;
Detrimental externalities and non-convexities in the production set; Pigouvian solution to
externality; Coase theorem; Public goods & the tragedy of common; Lindahl’s solution; The
optimal level of pollution; Market achievement of optimal pollution; Taxation and optimal
pollution; Environmental standards, taxes and subsidies; Marketable pollution permits;
Uncertainty and the choice of policy instruments; Environmental risk and irreversibility;
Environmental protection and income distribution

Unit III:
Environmental Valuation: Environmental damages/benefits, Social cost benefit analysis; Use
values, Option values and Non-use values; Valuation techniques; Production based, Travel cost
method; Contingent valuation; Hedonic-pricing method

Unit IV:
Environmental Accounting and Development: Integrated Environmental & Economic
Accounting & Measurement of Environmentally Corrected GDP; Environmentally Adjusted
NDP; Adjusting NI Measurement to Account for Environment (Non-renewable resources);
ENDP with Exploration Activity related to Exhaustible resources; Environment development
trade-offs; Sustainable development— Concepts and indicators; Environmental Kuznets curve

Selected Readings List:

1. Anderson, D. A. (2014), Environmental Economics and Natural Resource Management,
Routledge, London.
2. Baumol, W.J. and Oates, W.E. (1998), The Theory of Environmental Policy, Cambridge
University Press, New York.
3. Bhattacharya, R. N. (2001), Environmental Economics, Oxford University Press, New
Delhi.
4. Hanley, N., Shogren, J.F., White, B. (1997), Environmental Economics in Theory and
Practice, MacMillan.

39
 5. Kolstad, C.D. (1999), Environmental Economics, Oxford University Press, New Delhi.
6. Pearce, D.W., Turner, R.K. (1990), Economics of Natural Resources and the
Environment, Prentice Hall Financial Times, England.
7. Roger, Perman. Yue, Ma. , James, Mc Gilvray., and Michael, Common. (2003),
Natural Resource and Environmental Economics, Pearson Education Limited.
8. Shankar, U. (ed.) (2001), Environmental Economics, Oxford University Press, New
Delhi.

40
 AGRICULTURAL ECONOMICS
ECO-PG-E404
Master of Arts in Economics
Semester IV (Elective Paper)

Credit: 4

Unit I:
Agriculture and Economic Development: Nature, scope and issues of agricultural economics,
organizational structure of agriculture; Role of agriculture in economic development;
Interdependence between agriculture and industry, Some empirical evidence; Models of
interaction between agriculture and the rest of the economy, Agricultural development;
Agricultural diversification, development of agro-based industries.

Unit II:
Economics of Rural Infrastructure: Use of land, water and energy, rural social infrastructure-
education and health; Land reforms, Land distribution, Structure and trends, Land values and
rent, Land tenures and farming systems, Peasant, capitalist and state farming; Tenancy and crop
sharing, Forms, incidence and effects; Land reform measures and performance; Women and land
reforms, problems of marginal and small farmers.

Unit III:
Agricultural Production and Productivity: Agricultural production, Resource use and
efficiency, production function analysis in agriculture, factor combination and resource
substitution, cost and supply curves; Farm size and laws of returns, Theoretical and empirical
findings; Farm budgeting and cost concepts, supply response of individual crops and aggregate
supply; Resource use efficiency in traditional agriculture, technical change, labour absorption.

Unit IV:
Rural Labour Market: Rural labour supply, interlocking of factor markets, mobility of labour
and segmentation in labour markets; Marginalisation of rural labour, nature, extent and trends in
rural employment; Agricultural wages in India, Male-Female wage differences, non-agricultural
rural employment, Trends and determinants.

Selected Readings:
1. Bhandari, A. (1984). The Economic Structure of Backward Agriculture, Macmillan,
Delhi.
2. Dantwala, M.L. (et al.) (1991). Indian Agricultural Development since Independence,
Oxford & IBH, New Delhi.
3. Griffin, K. (1973). Political Economy of Agrarian Change.
4. Joshi, P.C. (1975). Land Reforms in India: Trends and Prospects, Allied Publishers,
Bombay.
5. Raj, Sen Rao (1982). Dharm Narain: Studies on Indian Agriculture, Oxford Univ. Press,
New Delhi.

41
 6. Rao, C.H.H. (1975). Agricultural Growth, Rural Poverty and Environmental Degradation
in India, Oxford University Press, New Delhi.
7. Rudra, A. (1982). Indian Agricultural Economics: Myths and Reality, Allied Publishers,
New Delhi.
8. Saini, G.R. (1979). Farm Size, Resource Use Efficiency and Income Distribution, Allied
Publishers, New Delhi.
9. Appu, P.S. (1996). Land Reforms in India, Vikas, New Delhi.
10. Bardhan (1984). Land Labour and Rural Poverty, Oxford Univ. Press, New Delhi.

42
 ECONOMICS OF INFORMAL SECTOR
ECO-PG-E405
Master of Arts in Economics
Semester IV (Elective Paper)

Total Credit: 4

Unit I:
Concepts/Measures: Informal Sector— Statistical Concepts and Definitions; Informal
Employment Vs Informal Economy; Characteristics of Informal Sector; Regional Estimates of
Informal Sector— Conceptual Differences; Composition and Segmentation; Types of
Employment in the Informal Sector; Earnings and Benefits; The Urban Informal Sector— Size,
Composition and Contribution; Issues in Measurement; Improving Statistics on Informal
Employment.

Unit II:
Historical and Theoretical Perspectives on Informal Economy: The ILO and the Informal
Sector; Dual Economy Approach— Lewis Theory, Todaro Model, Fei and Ranis Model; Neo-
Marxian Approach; Structuralist Approach; Legalist Approach; Institutionalist Approach;
Voluntarist Approach; Recent Rethinking: ILO, WIEGO and World Bank; Sectoral
Dependencies and Interlinkages; Formal and Informal Sector Linkage— Forward and Backward;
The Informal sector and the Income Distribution— The Inverted U Curve

Unit III:
Informal Sector in Global Context: Informality and Growth— Production, Employment and
Environment; Informality and Poverty; Informal Sector and Development Policy Dilemma;
Globalisation and Informal Sector; Women and the Informal Sector; Wages and Incomes; Social
Protection and Informal Workers; Country Studies— Informality in Developing Countries; The
Second Economy in Socialist Countries; The Underground Economy in Developed Countries.

Unit IV:
Informal sector in India: Size, Structure and Growth; Manufacturing Sector; The Policy Context
— Small-scale Industry Reservation Policy; Industrial Licensing; Regulation and Informal
Sector— Factories Act, Labour Laws and Other Regulations; Informalisation of the Formal
Sector; Subcontracting; Debates on Firm Growth; Missing Middle; Determinants of Firm
Transition.
Selected Reading:
1. B. Harriss-White and A. Sinha 2007. Trade Liberalization and India’s Informal
Economy, New Delhi: Oxford University Press.
2. Basile, E. 2013. Capitalist Development in India's Informal Economy. Oxon: Routledge.
3. Breman, Jan. 2013. At Work in the Informal Economy of India: A Perspective from the
Bottom Up. New Delhi: Oxford University Press.
4. De Soto, H. 1989. The other path. New York: Harper and Row.

43
 5. Little, I.M.D., D. Mazumdar and J.M. Page. 1987. Small Manufacturing Enterprises: A
Comparative Analysis of India and Other Economies. New York: Oxford University
Press.
6. Marjit, S. and Kar, S. 2011. The Outsiders: Economic Reforms and Informal Labour in a
Developing Economy, New Delhi: Oxford University Press.
7. Mazumdar, D. and S. Sarkar. 2013. Manufacturing Enterprises in Asia: Size Structure
and Economic Growth. London and New York: Routledge.
8. Portes, A., Castells, M. and L. Benton, eds. 1989. The Informal Economy. Studies in
Advanced and Less Developed Countries. Baltimore:
The Johns Hopkins University Press.
9. Raj, R.S.N. and Sen, K. 2016. Out of the Shadows? The Informal Sector in Post-Reform
India, Oxford University Press, New Delhi
10. Tanzi, V. 1982. The Underground Economy in the United States and
Abroad. Lexington: Lexington Books.

44
 COMPUTER APPLICATIONS IN ECONOMICS
ECO-PG-E406
Master of Arts in Economics
Semester IV (Elective Paper)

Credit: 4
Unit I:
Introduction to Computers and Peripherals: Meaning, Characteristics, types and evolution of
computers; Basic components of computer; Networking and Resource Sharing; Introduction to
Operating System; Fundamental of Database Management— Concepts of Data, Information,
Record, File, Database, DBMS, Function of DBMS, Components of DBMS, DBMS Availability,
MS Excel, MS Access, MS Word, MS PowerPoint.

Unit II:
Data Compilation and Analysis: Data Processing; Techniques; Data Extraction, Importing
Data, Data Entry, Editing, Cleaning and Coding (using MS Access, MS Excel, SPSS); Types of
Data: Time Series, Cross Sectional, Panel and Pooled Data; Classification and Tabulation:
groups, tables, cross tables, graphs and objects, Arithmetic Progression, Geometric Progression,
Time and frequency series.

Unit III:
Cross Section and Panel Data Techniques and Methods using SPSS/STATA/ any other
Software: Descriptive Statistics; One Sample T Test; Independent Sample Test; Paired Sample T
Test; One Way ANOVA; Correlation: Bivariate, Partial; Regression-Least Square, Binary and
Logistic Regression; Factor Analysis, Principal Component, Panel Data Regression Models:
Fixed and Random Effects Models

Unit IV:
Simultaneous Equation and Time Series Modeling using STATA/Eviews: Method of
Instrumental Variables, Two Stage Least Squares, Endogeneity and Causality, Self-Selection,
Hurdle Models, Decomposition Methods, Matching Methods, Distributional Effects; Time Series
Modeling: Unit Root Test, Cross Correlations and Correlograms, Granger Causality,
Cointegration

Selected Readings:
1. Baum, C.F. (2006), An Introduction to Modern Econometrics Using Stata, Stata Press
2. Bradley, A. (1991), Peripherals for computer systems, Macmillan Education
3. Davis, G. and Pecar, B. (2013), Business Statistics Using Excel, Oxford: Oxford
University Press.
4. Griffiths, W.E., Hill, R.C. and Lim, G.C. (2011), Using EViews for Principles of
Econometrics, John Wiley & Sons
5. Gujarati, D. (2014), Econometrics by Example, Palgrave Macmillan, Hampshire, UK
6. Kerns (1993), Essentials of Microsoft windows, Word and Excel, Prentice Hall of India,
New Delhi.

45
 7. Landau, S. and Everitt, B.S. (2004), A Handbook of Statistical Analyses using SPSS,
Chapman and Hall/CRC, London.
8. Stephe, M. (2006), Databases with Access: Learning Made Simple, Butterworth-
Heinemann.
9. Thareja, R. (2014), Fundamentals of Computers, New Delhi: Oxford University Press.
10. Thomas, C. (2014), Exploratory Data Analysis in Business and Economics: An
Introduction Using SPSS, Stata, and Excel, Springer International Publishing,
Switzerland.
Eviews Manual, Stata Manual, SPSS Manual

46
 ANALYSIS OF INDIAN PLANNING
ECO-PG-E407
Master of Arts in Economics
Semester IV (Elective Paper)

Credit: 4

Unit I:
Introduction to Indian Planning: India at Independence – the notion of an underdeveloped
economy. The proximate determinants of growth and the role of resource mobilisation. Means to
resource mobilisation in an underdeveloped, labour surplus economy— costless utilization of
unutilized labour and the productive use of the produced economic surplus; NITI Ayog.

Unit II:
Institutions, Policies and Plan Models: The possibilities of and the constraints to the costless
utilization of surplus labour. The role of economic organisation and institutional change.
Defining the Economic Surplus. On the productive use of the economic surplus. Two aspects of
the problem: “disproportionality” and “resource mobilization”. Forms of disproportionality. The
capital goods bottleneck. Planniong Models— Harrod-Domar, Mahalanobis model. The
Mahalanobis strategy and the concept of the Bargain Sector. The industrial policy regime during
the Mahalanobis years. Industrial structure and phases of industrial growth. The role of import
substitution. Alternative explanations for the industrial recession of the mid-1960s. The relation
between public and private investment.

Unit III:
Major Bottlenecks: The wage goods bottleneck. The agrarian question in India. The experience
with land reforms. Features of agricultural growth prior to the Green Revolution and the
agricultural crisis of the mid-1960s. The Green Revolution strategy and its consequences.
Resource mobilization and the productive use of the produced economic surplus. Trends in
government revenue and expenditure. The fiscal crisis of the State. The problem of inflation.

Unit IV:
Economic Reforms: India’s balance of payments. The exchange control regime and alternative
perceptions of the foreign exchange problem. The foreign exchange crisis of the 1950s, 1960s
and 1990s. Explaining trends in employment, poverty and deprivation. The neoclassical critique
of the import-substitution regime. Economic “reform” and liberalisation. The functioning of the
economy under neo-liberal policies: some theoretical and empirical issues. Growth during the
“reform” years. Poverty and employment trends in the 1990s.

Selected Readings:
1. Ahuwalia, I.J. (1985) Industrial Growth in India Oxford University Press.
2. Bagchi, A. K. (1971) “Theory of Efficient Neocolonialism”, Economic and Political
Weekly, Vol. 6, No. 30.
3. Bagchi, A. K., and N. Banerjee (eds) (1981) Change and Choice in Indian Industry K. P.
Bagchi.

47
 4. Bardhan P. K. (1984) The Political Economy of Development in India Oxford University
Press.
5. Bhaduri, A., and D. Nayyar (1995) An Intelligent Person’s Guide to Economic
Liberalisation Penguin Books.
6. Bhagwati, J. N., and P. Desai (1970) India: Planning for Industrialisation Oxford
University Press.
7. Bhalla, G. S., and G. Singh (2001) Indian Agriculture: Four Decades of Development
Sage Publications.
8. Bharadwaj, K. (1974) Production Conditions in Indian Agriculture Cambridge University
Press.
9. Byres, T. J. (ed) (1998) The Indian Economy: Major Debates Since Independence Oxford
University Press.

48
 TIME SERIES ANALYSIS
ECO-PG-E408
Master of Arts in Economics
Semester IV (Elective Paper)

Total Credit: 4

Unit I:
Exploratory Analysis of Time Series: Graphical display, classical decomposition method,
estimation, elimination of trend and seasonal components; Stationary Time Series— weak and
strong stationary, AR, MA, ARMA processes; Conditions for stationarity, invertibility and
causality; Autocorrelation and partial autocorrelation functions (ACF, PACF); Identification
based on ACF and PACF; Estimation, order selection and diagnostic checks; Akaike information
criterion, Schwarz information criterion.

Unit II:
Nonstationary Processes: ARIMA; Determination of order of integration, tests of non-
stationarity (unit root tests) — Dickey-Fuller (DF); augmented DF (ADF), Phillips-Perron tests;
Transforming nonstationary time series, Co-integration— tests for co-integration

Unit III:
Forecasting and Prediction based on AR, MA, ARMA and ARIMA models: Estimation of
the ARIMA Model— diagnostic checks-forecasting; VAR Model— estimation of VAR—
forecasting with VAR; VAR and Causality— VECM.

Unit IV:
Practical Application of Time Series Data: Applications of different software packages and
tools for handling different practical problems related to time series data.

Selected Readings:
1. Brockwell, P. J. and Davis, R. A (2002). Time Series: Introduction to Time Series and
Forecasting. Springer.
2. Chatfield, C. (2003). The Analysis of Time Series: An Introduction. Chapman and
Hall/CRC Press.
3. Hamilton, J.D. (2009). Time Series Analysis. Princeton University Press.
4. Brillinger, D. (2001). Time Series: Data Analysis and Theory.
5. Brockwell, P. J. and Davis, R. A. (2009). Time Series: Theory and Methods. Springer.
6. Fan, J., and Yao, Q. (2005). Nonlinear Time Series: Nonparametric and Parametric
Methods. Springer.

49
 POVERTY AND INEQUALITY
ECO-PG-E409
Master of Arts in Economics
Semester IV (Elective Paper)

Total Credit: 4

Unit I:

Introduction: concepts of poverty, steps in measuring poverty, choice of indicator; Poverty line-
Measuring Poverty line, Head Count ratio, Poverty gap Index, Sen Index, The Sen Shorrocks-
Thon Index, The Watts Index; Checking for the robustness of Poverty Indices.

Unit-II:

Inequality Measures: Definition of Inequality, Measures of Inequality, comparison,

Decomposition of Income inequality, Conceptual issues- inequality is bad for the poor; beyond
conventional measures of income and inequality within the household, public policy.

Unit III:

Describing Poverty: Poverty profiles, understanding determinants of poverty; Multi-

dimensional poverty, poverty reduction policies, vulnerability to poverty and analysis of poverty
over time, poverty monitoring and evaluation

Unit IV:

Poverty and Inequality in India: Concepts of poverty and inequality in context of India,
poverty concepts and measurement, poverty index proposed adjustment, The estimates of CSO
and NSSO; Regional contrast; Growth of poverty since 1990s and Aspects of rising inequalities;
policy responses and evaluation. Tendulkar Committee and Rangarajan Committiee Report.

Selected Readings:

1. Houghton, J, Sahidur, K. R (2009) Handbook of Poverty and Inequality, The World bank,
Washington DC.

50
2. Cornea, Geovanne. Andrea (Eds) (2004) Inequality, Growth and Poverty in an Era of
Liberalisation and Globalisation, World Institute for Development Economics Research of
the United Nations University (UNV/WIDER) Finland, OUP.

3. Nallari, Ray and Griffin Breda (2011) Understanding Growth and Poverty: Theory Policy
and Empirics, World Bank, Washington, DC.

4. Danziger Sheldon. H, Haveman, Robert, H. (Eds) (2001) Understanding Poverty, Havard

University Press.

5. Jenkins, S.P. and Micklewright, J (Eds) (2007) Inequality and Poverty Reexamined, OUP.

6. Wagle Udaya (2008) Multi-dimensional Poverty Measurement: Concepts and Applications,

Springer Science+ Business media

7. Deaton A., Dreeze Jean (2002) Poverty and Inequality in India, Economic and Political
Weekly, 7(36): 3729-3748.

51
 ECONOMY OF MOUNTAINOUS REGIONS
ECO-PG-E410
Master of Arts in Economics
Semester IV (Elective Paper)

Total Credit: 4

Unit I:
Economy and Resources: Economy— Characteristics of the mountainous regions’ economy;
Structure of its economy; Paradigm of structural change; Natural resources— Land ownership
and use pattern; Its impact on economic development; Forest and mineral resources; Renewable
and non-renewable resources of the terrains; Common Property Resources; Communitisation.

Unit II:
Agriculture, Infrastructure and Industry: Agriculture— Major issues of jhumming;
Agricultural practices; Patterns of cropping; Problems of agriculture; Problem of double
cropping; Determination of agricultural production and productivity; Issues on irrigation;
Agricultural productivity; Modernization of agriculture; Infrastructure— Power, road, banking,
transport and communication etc.; Industry— Backwardness of industry, it causes and remedies;
Important and major existing industries such as oil, minerals, tea etc.; Small-scale and cottage
industries; Industry and sustainability.

Unit III:
Population, Labour Force and Human Development: Population— Pattern and trend of
population growth; Factors affecting the growth of population; Policy to control the growth;
Urbanization and migration; Labour Force— Occupational structure; employment;
unemployment; Human Development- Education, per capita income, life expectancy, human
development index.

Unit IV:
International Borders and Trade: Historical relevance and scope; Significance and prospect of
border trade in the Himalayan region with special emphasis on Sikkim; Contribution of border
trade to state income; Trade with the neighboring countries like Nepal, Bhutan, China (Tibetan
Region), Myanmar and Bangladesh; Trade and development in mountainous terrains and its
policies.

Selected Readings:
1. Das, G. and Thomas, J.C. (2016 eds.): Look East to Act East Policy, Routledge, New
Delhi
2. Datta-Ray, B. (Ed.) (1980). Shifting Cultivation of North-East India, North East Indian
Council for Social Science Research (NEICSSR), Shillong.
3. Dutta, B.B. and Karna, M.N. (eds.) (1987). Land Relations in North East India, People’s
Publishing House, New Delhi.
4. Pandey, R.S. (2010), Communitisation, Concept Publishing House, New Delhi.
5. Goswami, Atul (ed.) (1996). Land Reforms and Peasant Movements: A Study of North
East India, Omsons Publications, New Delhi.

52
 6. Lama, Mahendra P (2000 reprint), Sikkim: Society, Polity, Economy and Environment,
Indus Publications, New Delhi.
7. Lama, Mahendra P, (1986). The Eastern Himalayas: Environment and Economy‚ with
RL Sarkar), Atma Ram and Sons, Delhi.
8. Nathu la Trade Study Group (2005). Sikkim-Tibet Trade via Nathu la: A Policy Study on
Prospects, Opportunities and Requisite Preparedness, Government of Sikkim.
9. Singha, K. (2001). Economy of a Tribal Village in Manipur, New Delhi: Concept
Publishing Company.
10. Taylor, J.E. and Adelman, I. (1996). Village Economies, Cambridge University Press,
NY.

53
 GENERAL EQUILIBRIUM ANALYSIS
ECO-PG-E411
Master of Arts in Economics
Semester IV (Elective Paper)

Total Credit: 4

Unit I:
Exchange: The Problem and Solutions (Walras and Edgeworth) – Competitive Equilibrium,
Core and the Equivalence Theorem, Effect of Endowment Changes

Unit II:
Production: Structure of Simple General Equilibrium Production Models; General Activity
Analysis Models of Production; Linear Models— Non-Substitution Theorem; Supply Functions

Unit III:
Equilibrium under Certainty: Structure and form; Walrasian Equilibrium: Existence,
Uniqueness and Stability; Welfare and Efficiency Properties; Non-Walrasian Equilibria— Non-
Tatonnement Processes; Rationing Equilibria; Effective Demand; Micro foundations of
Macroeconomics

Unit IV:
Equilibrium under Uncertainty: Equilibrium with state contingent Markets, Sequence
Economies and the Radner Equilibrium, Fundamental Theorem of Asset Pricing and the
Equivalence of Arrow- Debreu and Radner Equilibrium , Equilibrium with Incomplete Market

Selected Readings:

1. Arrow, K.J. and Hahn, F. H. (1971), General Competitive Analysis, Holden-Day.

2. Debreu, G. (1959), Theory of Value: An Axiomatic Analysis of Economic Equilibrium,
New Haven, Yale University Press.
3. Debreu, G., (1984), Existence of Competitive Equilibrium, in Handbook of Mathematical
Economics, Volume II (ed., Arrow and Intrilligator), North Holland, Amsterdam.
4. Hicks, J.R. (1946), Value and Capital, Clarendon Press.
5. Mas-Colell, A., Whinston, M.D. and Green, J. R. (1995), Microeconomic Theory, Oxford
University Press.
6. Mukherji, A. (2002), An Introduction to General Equilibrium Analysis: Walrasian and
Non Walrasian Equilibria, Oxford University Press.
7. Sen, A. (1970), Collective Choice and Social Welfare, Holden-Day.
8. Takayama, A. (1985), Mathematical Economics, Cambridge University Press.
9. Varian, H.R. (1992), Microeconomic Analysis, Norton.
10. Walras, L. (1954), Elements of Pure Economics (translation by W. F. Jaffe), George
Allen and Unwin.

54
 EFFICIENCY AND PRODUCTIVITY ANALYSIS
ECO-PG-E412
Master of Arts in Economics
Semester IV (Elective Paper)

Total Credit: 4

Unit I:
Production Function: Parametric form, Rate of technical substitution, elasticity of output, scale
and returns to scale, elasticity of substitution; Formal description of technology- Fixed
coefficient technology, DEA Models of technology; Cost Functions- properties of cost function,
cost function for Cobb-Douglas technology, Leontief technology, CRS and VRS technology;
Indirect Production Function- Duality between cost and indirect production, Distance functions.

Unit II:
Efficiency Measurement: The concept of efficiency, Farrell and Pareto-Koopman efficiency,
Differences between efficiency and productivity, DEA, The basic input and output oriented DEA
model. The primal and dual (multiplier and envelopment model) model and the importance of
these forms, CCR Model and BCC model, Computation of scale efficiency and decomposition of
technical efficiency into PTE and Mix efficiency, Additive models and Empirical Application.

Unit-III:
Allocation Models: Efficiency with common price and cost, efficiency under different unit
prices; Decomposition cost efficiency; Revenue efficiency and Profit efficiency; Empirical
applications of cost efficiency, allocative efficiency, profit efficiency and revenue efficiency.

Unit-IV:
Total Factor Productivity: TFP using index number, Malmquist Productivity Index- the
concept, the decomposition of Malmquist Productivity Index; Empirical Applications.

SUGGESTED READINGS
1.Cooper, W.W., Lawrence, M.S., Tone, K. (2005). Introduction to Data Envelopment
Analysis and its Uses with DEA Solver Software, Springer.
2.Charnes, A., Cooper, W. W., Lewin, Y. A., and Seiford, M.L. (Eds) (1994), Data
Envelopment Analysis: Theory, Methodology and Application, Kluwer Academic
Publishers, London.
3.Coelli T., D.S. Prasada Rao, G. E. Battese (1998). An Introduction to Efficiency and
Productivity Analysis, Kluwer Academic Publishers, London.
4.Ray, Subhas. C. (2004). Data Envelopment Analysis: Theory and Techniques for
Economics and Operation Research, CUP, NY
5.Thanassoulis Emmanuel (2003). Introduction to the Theory and Application of Data
Envelopment Analysis: A Foundation Text with Integrated Software, Springer Science+
Media.
6.Blackburn, V; Brennan, Shae; Ruggiero, John (2014). Non Parametric Estimation of
Educational Production and Costs using Data Envelopment Analysis, Springer.
7.Hackman, Steven T (2008). Production Economics: Integrating the Microeconomic and

55
 Engineering Perspectives, Springer, USA.
8.A. Charnes, W.W. Cooper and E. Rhodes, Measuring the Efficiency of Decision Making
Units, European Journal of Operational Research, 2, 1978, pp.429-444.
9.R. D. Banker, A. Charnes and W.W. Cooper (1984). Some Models for Estimating
Technical and Scale Inefficiencies in Data Envelopment Analysis, Management Science
30:1078-1092
10. Varian, Hall. (1984). Microeconomic Analysis, NY, WW Norton.

56